On the effects of unilateral environmental policy on offshoring in multi-stage production processes

"In the last decades supply chains emerged that stretch across many countries. This has been explained with decreasing trade and communication costs. We extend the literature by analyzing if and how unilateral environmental regulation induces offshoring to unregulated jurisdictions. We first ap...

Full description

Bibliographic Details
Main Authors: Schenker, Oliver, Koesler, Simon, Löschel, Andreas
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Mannheim 2014
ZEW
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19115620124919338029-on-the-effects-of-unilateral-e.htm
_version_ 1771659893520990209
author Schenker, Oliver
Koesler, Simon
Löschel, Andreas
author_facet Schenker, Oliver
Koesler, Simon
Löschel, Andreas
collection Library items
description "In the last decades supply chains emerged that stretch across many countries. This has been explained with decreasing trade and communication costs. We extend the literature by analyzing if and how unilateral environmental regulation induces offshoring to unregulated jurisdictions. We first apply an analytical partial-equilibrium model of a two-stage production process that can be distributed between two countries and investigate unilateral emission pricing and its supplementation with border carbon taxes. To get a more comprehensive picture, we subsequently apply a computable general equilibrium model that includes a better representation of international supply chains. We find heterogeneous, but mostly positive effects of a unilateral carbon emission reduction by the European Union on the degree of vertical specialisation of European industries and explain these differences by heterogeneity in the emission-intensity and pre-policy vertical specialisation of sectors. Border taxes are successful in protecting upstream industries, but with negative side effects for downstream industries."
format TEXT
id 19115620124919338029_f71ead1965f94a2eabdfc0ad3782330d
institution ETUI-European Trade Union Institute
is_hierarchy_id 19115620124919338029_f71ead1965f94a2eabdfc0ad3782330d
is_hierarchy_title On the effects of unilateral environmental policy on offshoring in multi-stage production processes
language English
physical 38 p.
Digital
publishDate 2014
publisher Mannheim
ZEW
spellingShingle Schenker, Oliver
Koesler, Simon
Löschel, Andreas
environmental policy
gas emission
international relocation of industry
international
outsourcing
taxation
On the effects of unilateral environmental policy on offshoring in multi-stage production processes
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=108671392685
title On the effects of unilateral environmental policy on offshoring in multi-stage production processes
topic environmental policy
gas emission
international relocation of industry
international
outsourcing
taxation
url https://www.labourline.org/KENTIKA-19115620124919338029-on-the-effects-of-unilateral-e.htm